[Nehkara]

Tesla and Panasonic said to reach agreement on gigafactory

Panasonic has reached a basic agreement with electric-car maker Tesla to participate in a large-scale battery plant, or a so-called Gigafactory, according to a Japan-based report.

Panasonic is expected to invest between 20 billion yen and 30 billion yen (about $194 million to $291 million) initially and will be in charge of equipping the factory with the machines to produce the lithium-ion battery cells, Japan's Nikkei reported in its Tuesday edition.

Total investment in the factory may reach $5 billion, with Panasonic contributing about $1 billion, according to Nikkei.

The report did not mention, however, where the plant's site would be. Tesla is evaluating three sites in the US.

Panasonic owns a stake in Tesla and makes the batteries used in Tesla's cars.